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Financial expert explains: What is behind the massive slump in the construction industry in 2024? Find out the reasons now!
According to a report from www.merkur.de, the construction industry in Bavaria is weakening massively. High inflation, the interest rate turnaround with significant interest rate increases and rising construction costs have led to a longer-lasting downturn. The Krämmel Group, the largest construction company in the region, is recording the effects of this crisis. The legislature's regulatory frenzy, new requirements, standards and laws as well as delivery and material bottlenecks have led to further delays and cost increases. The Krämmel Group does not expect any short-time work as it is well positioned thanks to its broad portfolio and has further projects in the pipeline. Nevertheless, the focus is increasingly being placed on lean processes and procedures. The “OPUS.G” housing project in Geretsried...
Financial expert explains: What is behind the massive slump in the construction industry in 2024? Find out the reasons now!
According to a report from www.merkur.de, the construction industry in Bavaria is weakening massively. High inflation, the interest rate turnaround with significant interest rate increases and rising construction costs have led to a longer-lasting downturn. The Krämmel Group, the largest construction company in the region, is recording the effects of this crisis. The legislature's regulatory frenzy, new requirements, standards and laws as well as delivery and material bottlenecks have led to further delays and cost increases.
The Krämmel Group does not expect any short-time work as it is well positioned thanks to its broad portfolio and has further projects in the pipeline. Nevertheless, the focus is increasingly being placed on lean processes and procedures. The “OPUS.G” housing project in Geretsried is affected by rising construction costs, but work on the Silva construction phase is already underway and the other construction phases Aqua and Viva are being prepared. The resulting living space is urgently needed as the pressure on the housing market was already very high and is further increased by the collapse in construction activity.
The impact of the current situation on the real estate market and the construction industry is significant. The delays and cost increases are impacting the availability of housing, which in turn impacts the skills shortage and the growth opportunities for businesses in the region. The Krämmel Group sees the solution as making construction easier again by significantly reducing regulation.
The fact is that rising construction costs, delivery bottlenecks and the legislature's obsession with regulation are having a significant impact on the construction industry and the real estate market. Providing housing is becoming increasingly difficult, which in turn has an economic impact on the region. It remains to be seen how the federal government will respond to these problems and whether measures will be taken to improve the situation.
Read the source article at www.merkur.de